4A-G revision Flashcards
Business change definition
Business change is any planned or unplanned alteration to business processes and procedures because of pressures inside or outside the business.
Business environments that may influence change
Internal environment Operating environment (suppliers and customers) Macro environment (government, economy)
Changes in business can be either:
Reactive
Proactive
What is proactive management?
Refers to when careful considerations have been made about what the business is facing in the future and processes are set in place to manage anticipated events/possibilities.
What is reactive management?
Refers to when decisions are made as quickly as needed as a result of an unanticipated situation occurring.
Key Performance Indicators definition
Refers to the criteria that measure how efficient and effective a business is at achieving objectives
What are the 9 KPI’s?
Level of staff turnover Percentage of market share Rate of productivity Number of sales Level of staff absenteeism Level of waste Number of customer complaints Number of workplace accidents Net profit figures
What do KPI’s do?
Establish business objectives
Develop and implement strategies
Evaluate performance
What is the purpose of KPI’s?
KPI’s are used to evaluate how successful a change made in a business has been according to the business’s objectives.
Identify need for change by
Finding the problem
Looking at the options available
The strength of those options
The potential result of those options
Percentage of market share definition
Percentage of market share highlights how well a business is performing within their industry by looking at the proportion of total sales in a specific industry.
How can percentage of market share evaluate performance?
Percentage of market share indicates how well a business is performing in comparison to their competitors. The greater market share, the greater sales a business has compared to their competitors.
Net profit figures defintion
Net profit figures is the amount of money left over once a business has deducted total costs from revenue.
How can net profit figures evaluate performance?
Net profit figures allows a business to see how well they are performing financially and if revenue is too low or if costs are too high.
Rate of productivity growth definition
Rate of productivity growth is a measure of the increase in output per input over a period of time.
How can rate of productivity growth evaluate performance.
Rate of productivity growth indicates how efficient a business’s operations system are and therefore allows the business to see if they are improving in performance or not.
Number of sales definition
Number of sales refers to the amount of goods and services sold by a business within a specific period of time.
How can number of sales evaluate performance?
Number of sales can determine customer satisfaction levels, as an increase in sales will mean customers like the product.
Rates of absenteeism definition
Rates of staff absenteeism refers to an employee’s ratio of non-present days to work days during a given period of time.
How can rates of absenteeism evaluate performance?
Rates of staff absenteeism can determine the levels of staff morale and overall how satisfied employees are with working conditions.
Level of staff turnover definition
Measures the number of staff who leave a business and are replaced by new employees over a time period.
How can level of staff turnover evaluate performance?
Determines levels of staff morale
Levels of wastage definition
Level of wastage measures the amount of waste the business produces through their activities and processes.
How can levels of wastage evaluate performance?
Levels of wastage indicates how significant environmental and economic problems are for the business and if that is affecting overall performance.
Number of customer complaints definition
Measures the number of customers telling the business they are dissatisfied.
How can number of customer complaints evaluate performance?
Indicates levels of customer dissatisfaction, which is something that affects sales, profit and reputation of the business, so varying levels will indicate how the business is performing.
Number of workplace accidents definition
Measures the number of workplace accidents that occur in a business over a period of time.
How can number of workplace accidents evaluate performance?
It reflects the safety of the workplace and measures the productivity the business is, as accidents cause disruptions to work and that affects performance.
Force field analysis definition
Force field analysis is a model that determines if businesses should proceed with a proposed change. The model identifies and examines factors which either drive or restrain a movement from being successful.
Force field analysis process
- Identify need for change
- Identify driving forces
- Identify restraining forces
- Assign scores
- Analyse and apply
Advantages of force field analysis
Businesses can accurately examine if a proposed change will be successful
Businesses can potentially save time by promoting the main driving forces and limiting restraining forces
Business can save money by only deciding to implement change where success is likely